3(16) Fast Facts

As part of our ongoing commitment to the plan sponsors we serve, we are happy to provide the following educational information regarding the duties of a plan administrator. These requirements are also outlined under ERISA.

All plan administrators must do the following to ensure their plan is compliant with ERISA:

  • Complete IRS Form 2848 designated representation and compliance attestation
  • Sign and file IRS Form 5500
  • Ensure monitoring fiduciary performs adequate review/monitoring of Covered Service Providers (CSP)
  • Ensure 404(a)5 notices are sent
  • Ensure payments for individuals over 70½ occur in a timely manner
  • Review and update BrightScope
  • Ensure cash outs occur for employees with less than $5,000 in their accounts
  • Ensure deferrals are deposited in a timely manner
  • Ensure plan operates in accordance with guiding documents
  • Ensure ERISA budget and forfeiture accounts are emptied
  • Ensure the cheapest share classes available are being offered
  • Ensure loan defaults are performed annually
  • Ensure Qualified Default Investment Alternative (QDIA) notices are sent
  • Ensure Summary Plan Document (SPD) is properly maintained, is accurate, and delivered promptly
  • Ensure Safe Harbor notices are sent (if applicable)
  • Perform ERISA Section 411 review of providers for felonies, etc.
  • Develop and review Investment Policy Statement
  • Issue certification of reasonable fees for all CSPs
  • Renew fiduciary liability policy
  • Review party-in-interest transactions for auditors
  • Review all CSP contracts
  • Ensure errors and omissions declaration on all vendors is accurate
  • Update and maintain Treasury circular 570 fidelity bond
Want to learn more about 401(k) roles and responsibilities? Click here.